In 2012-13 property prices have moderated. As per the National Housing Bank (NHB) RESIDEX index for the quarter July-September 2012 compared to April-June 2012 there is a general decline in prices of residential properties in some smaller towns, while the increase in other cities is mostly marginal. As per estimation during the Twelfth Five Year Plan Period (2012-17), the housing requirement in urban areas is 18.7 million units of which 18.5 million are for the EWS/LIG segment.
As per a McKinsey Report, the demand for affordable housing will be 38 million by 2030. The housing loan portfolio of scheduled commercial banks and housing finance companies is 6.10 lakh crore as in end-March 2012.The Indian real estate market size is expected to touch US$ 180 billion by 2020. The demand is expected to grow at a compound annual growth rate (CAGR) of 19 per cent between 2010 and 2014, with tier I metropolitan cities projected to account for about 40 per cent of this.
The Indian real estate industry has attracted a cumulative FDI worth US$ 21,765.55 million from April 2000 to November 2012. FDI flows into the construction sector for the period April-October 2012-13 stood at US$ 691 million, according to the Department of Industrial Policy and Promotion (DIPP). India needs to invest US$ 1.2 trillion over next 20 years to modernise urban infrastructure and keep pace with the growing urbanisation. The year 2012 has seen maximum number of steps taken by the Government to boost the real estate sector in India. As a result, developers believe that the coming years would be positive for the real estate sector.